Advertising/sales for solar pv

[sparky011]

Hi there looking for some advise

I am just about to start selling solar pv through my electrical contracting company, most of our work comes in threw form of tenders and word of mouth, sales etc is a new market for me

What is the best way to advertise this part of the company and to get sales,

Do we employ salesmen, call centres to get leads etc etc

All advice would be greatfull

 

[MrCloser]

imo, there are a lot of companies chasing the business right now and margins are much reduced now . Unless you have a very decent volume of business from day one then you won't be getting the right discount terms from your suppliers, plus you'll have all the expense/aggro of setting up a sales team. Then you will be competing with companies like Tesco etc who have massive buying power and no cashflow problems.

As the FIT's are going to be revised there is going to be quite a stampede to get installations done before the cut off date. If the FIT drop is severe it might seriously stall the market. If you are MCS registered you might be better concentrating your efforts into subcontracting installations.

If you must do the pv solar company route then getting decent sales agents who can generate their own leads or buy them in from elsewhere is the answer, but really it needs someone who really knows their stuff to do the surveys, training, sales management etc.

The business model is so dependent on the FIT tariff review I'd be looking to make money this year rather than invest lots in the hope of a long term sustainable business.

 

[RobertB]

The solar industry is about to go into free fall if the following Guardian artical is correct

http://www.guardian.co.uk/environment/interactive/2011/oct/28/feed-in-tariffs-solarpower

 

[businessleadsco]

The solar industry is about to go into free fall if the following Guardian artical is correct

http://www.guardian.co.uk/environment/interactive/2011/oct/28/feed-in-tariffs-solarpower

If they do cut the Feed in Tariff as they propose the effects on the industry as a whole shall be devastating. I have a feeling alot of solar companies are about to disappear overnight. Where are the jobs going to come from? Cutting the Feed in Tariff now in the current climate...Just Plain Stupid. Any thoughts anyone?

 

[sparky011]

To be honist dosnt supprise me with this government, another good decision


Ill be honist i dont think that this will effect that much as electricity price will still rise and people will still want to reduce there electricity bills

 

[RobertB]

Sparky

Check out the site below regarded FiT, one contributor on that site has made a very valid point that not only is there a reduction in the KWh payment but also the house (which is having the panels fitted) must have a C rate Energy Performance Certificate.

http://www.solarpowerportal.co.uk

To be honest, this reminds me of when I ran a computer training company using ILA's as the funding mechanism. Just like solar the government changed the way funding was allocated and the business became non-viable.

I'm now very sceptical of any business model which uses government funding as part of it's business plan. I wonder how Deborah Meaden (Dragons Den) is feeling after investing £75k in a solar installation company.

(just check my original post and yes I can spell article - opps and I was a teacher…)

 

[sparky011]

Hi robert

I am away to have a look, i thought the FIT were a tax as such paid by the energy companies and nothing to do with the government( am i mistake)

 

[MrCloser]

If this is true then that's uk solar pv dead . At 21p the ROI is too low to justify a 25 year linvestment. I'm under the impression that there is a big oversupply issue in the solar panel manufacture, prices will continue to fall, just probably not enough. Also as either an investor/homeowner or solar pv sales engineer I'd be extremely sceptical about the shelf life any future government garaunteed "incentives".

The solar industry hasn't helped itself by inflating the ROI's, also I guess the electric companies have been pulling strings behind the scenes. They claim that microgeneration is creating big problems for the national grid but I'm not convinced with any technical explanation offered and I think they may be milking it a bit.

Just glad I held off from wasting a big wedge of cash and time on City and Guilds 2391 solar pv, health and safety twaddle, MCS accreditation, REA membership, NECIEC membership, public liability insurance, van and tools etc.

 

[sparky011]

I am thinking along the same lines as you guys, only thing that i have been thinking of is there is seriously large money involved in supplying of solar panels and if companies start goimg under left right and centre there will be a nock on effect not just threw solar installers but threw the suppliers as well,

The government might have a big loss on there hands

 

[Searcher]

Massive day tomorrow, Monday. If the Govt does cut the FiT it'll be disastrous. Tbh, the whole FiT scheme has been set up badly from day one and it does need correction. But hundreds of companies and individuals have committed time and money based on Govt assurances, so to be told that this could end in 6 weeks is dreadful news. They should give 6-12mths notice so that people can try and rescue their businesses.

As I understand it, the reason for the proposed change is that the pot of FiTs available has been hammered - no-one expected these Free solar schemes to muscle in. These companies are morally wrong anyway but they're likely to have destroyed everything.

Not having a good weekend myself. Worried about some of my clients (installers) and the obvious impact on myself.

 

[MrCloser]

As I understand it, the 'pot' of money was just a climate change tax paid by all hose holders on their electric bills, about £6 a year. If the FIT slashing is about energy costs maybe the energy cartels could cut their profits; reportedly up this year from £15 to £125 per customer according to OFGEM figures.

As for the rent a roofer's, I don't see any moral distinction between pension funds/venture capitalists and homeowners' making a profit. Also with RaR, I think it actually put a lot of confidence in the able to pay market when they could see big companies queuing up to finance installs.

Why the DECC couldn't shelf the tariff down in smaller steps over a few months, even if they started that months ago, it would have been better for everyone.

If we get severe weather and this December cut off date is confirmed, there are going to be a lot of very unhappy customers and installers soon. This FIT legislation and implementation has been very badly conceived.

 

[ukconstructionguru]

The feed in tariff cuts will see so many new start up firms going under. The government massively underestimated how much interest there would be in this industry and their subsidies have proved ridiculously unsustainable.

Feel sorry for all the smaller firms who have invested massively in training, infrastructure etc. I don't think it spells the end for the solar industry - not by a long shot. I do however think that it will separate the wheat from the chaff - only the best will survive.

It could be a positive to a degree also - weakened incentive to enter the market should keep competition low. Just hope consumer demand doesn't die out...

 

[RobertB]

I feel very sorry for small companies who were using the 43.3pKWh as part of their business plan.


For larger companies the 20p/KWh may be sustainable, however, why would I as a consumer want to invest £10k for 15 years (with no access to the money) for an return of (say) 5% compared to investing in an ISA where I can access the money fairly easily.

Also, mustn’t forget that my house needs to have (or be working towards) a C rate Energy Performance Certificate.

 

[Searcher]

I feel very sorry for small companies who were using the 43.3pKWh as part of their business plan. .

Yes and No. The FiTs were always going to be reduced anyway, everyone knew this. The difference was the speed of the change as it was supposed to be April - so anyone should have built this into their business plans anyway.

The actual rate of cut is harsh but I spoke to all of our solar clients yesterday and they seem fairly relaxed. Not happy, but not too concerned. Their argument is that PV prices have come down and will continue to drop. So whereas on paper a customer will make 4-5% with the new rate they reckon they'll find ways to bring this as close as possible to 10%.

This means status quo for the consumers who get a good return for the same system which cost less. I'm guessing the installers will take a hit on margins but from what I've heard (and I have no proof) they were making £2,000-4,000 per job anyway.

So as a supplier of qualified leads and solar appointments I have to say that I managed to catch up on some sleep last night !

What do you guys think about the prospects for the rent-a-roof companies ? The boss of Homesun said they needed 28p to be viable but this review means they get 80% of 21p, so 16.8p. I can't see this being viable for them and they could close down.

The big problem is that they've supplied close to 100,000 homes so if they do go then what happens to warranties, guarantees etc etc ?

 

[CallCentreServices]

Good Morning all,

Well where to start - the solar market is certainly in for a shake up with the FIT's to be reduced to approx 0.20p per unit.

Although it spells difficult times for newly formed Renewable Energy Companies, it is not impossible to capitalise on what is still a very booming industry.

As a broker, I have implemented, planned, fully scripted and completed successful lead generation campaigns for numerous projects, of which, Solar PV is one.

There are many 'pro-active' buyers out there in the domestic market, however, to really make a go of it, companies rely on footflow/customers coming from elsewhere - with panic in the air everyone needs to be cautious about what routes they take to get there.

I offer choice, options and effectively an additional service based on my own experience within this type of marketing that Solar companies can call on should you wish to stand strong in the times ahead rather than just about keep your heads above water.

If you would like to speak to me more in more detail,

Please feel free to drop me a message and we can take it from there.

Best Regards

 

[CallCentreServices]

Where is the link Steve?

I concur with your comments 100% - we all anticipated the FIT's reduction early this year but slashing them by 50% is just ludicrous!

 

[tariqshoaib]

Hi there could you please contact me on 07878215050, as I feel I really need your advice on my business. thnx

 

[CallCentreServices]

Hi there could you please contact me on 07878215050, as I feel I really need your advice on my business. thnx

Hi Tariqshoaib,

If you require assistance please post your contact email address or forward it to me via a private message and I will get back to you swiftly.

Best Regards

 

[loubycee]

Have you thought about online marketing - adding the solar pv details on your website, focusing on keywords, marketing it locally and building from there? Plus, mail shots to your old/existing clients - if they trusted you last time, and they want solar (and know you're fitting panels now) they'll more likely come to you above anyone else

just a thought sparky

 

[RobertB]

IMO solar is going to be a very hard sell. I've just check my own house using the 43p tariff and then recalculating using the new 21p tariff.

Old tariff (over 25 years) I would 'make' £5264
New tariff (over 25 years) I would loss £797

Sparky, have a look for yourself, link as follows

www.energysavingtrust.org.uk/Genera...PV-electricity-panels/Solar-Energy-Calculator

 

[Leadstoyouexeter]

I supply Solar PV leads and Heat pump leads and very few are worried about the cuts to FITS, A lot of them are going down the heat pump route so they have 2 strings to there bow, unless of course they do both

We have lots and lots of interest from companies wanting leads for the renewables market.

 

[businessleadsco]

I supply Solar PV leads and Heat pump leads and very few are worried about the cuts to FITS, A lot of them are going down the heat pump route so they have 2 strings to there bow, unless of course they do both

We have lots and lots of interest from companies wanting leads for the renewables market.

Yeah I have to agree since the initial panic everything seems to of settled down now. We have started booking in up until june of next year for Pv and on the other sectors like Heat pumps and Biomass were seeing a steady growth. However I still think the reduction in the FIT is bad news.

 

[RobertB]

Why I think that solar will be a ‘hard sell’ is that once customers understand that to obtain the 21p/kWh the property must have an EPC of ’C’ or above, if the property has a EPC under ‘C’ the FiT drops to 9p/kWh.

As I understand, the DECC will give the householder till 31st March 2013 to obtain an EPC of ‘C’ (and will payout at the 21p/kWh rate) however, what happens if this ‘C’ rating is not obtained in this time scale?

Also, the cost of obtaining an EPC ‘C’ rating must be addressed.
The DECC are quoting that the average efficiency grade in England and Wales is ‘D’ and to improve this to ‘C’ will cost £2500 - £5600 (let’s not forget the £50 for the paper work)

So now we have a situation of having to tell the customer that not only will the solar system cost £xx’s they also have to pay out £2.5k (or more) to ensure that the property is ‘C’ rated.

Link to DECC
http://www.decc.gov.uk/assets/decc/...view-p1/3364-fits-scheme-consultation-doc.pdf

Sorry can’t comment about the heat pumps, not my field.

 

[salesteam]

Hi All
We are generating leads for Free solar PV in post-codes (SL,TW,HP,KT,RG,GU,HA,UB).
We can book appointments for you,
All lead are hot ,exclusive and generated Door to Door not telesales.
Details provided Name of client, Address, Property type, direction of roof.

You only pay if appointment booked otherwise replaced.
And we looking to charge £45 per appointment that means you are not paying for leads you will be paying per appointment.

contact me: avinash at accostingsolutions dot co dot uk
07592606253

 

[Psl]

if any you guys can supply me with Domestic/Commercial Solar PV leads that have been surveyed I would be very interested, just PM me details.

 

[Craigaroo]

All these lead generation companies....

Do solar pv companies not have other ways of "lead generation" other than paying someone for a list of prospects?

If it works then fair enough but it sounds to me like an extremely easy option, does it work?

I'm not interested in using lead generation companies by the way I'm just curious as to how it works because I hear so many solar pv companies talking about it but hardly any gas central heating companies do?

Also, I wouldn't say I was pleased about the fit scheme being reduced but if it cripples some of the solar con men (there's lots) it can't be a bad thing.